Abuja, Nigeria | September 22, 2025
The naira strengthened to ₦1,497 per dollar at the official foreign exchange market on Monday, ahead of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting scheduled to deliberate on interest rates.
Traders attributed the gain to improved dollar liquidity and cautious positioning by investors as the market anticipates fresh policy signals from the apex bank. The CBN is widely expected to maintain a tight monetary stance to curb inflationary pressures, though analysts say recent moderation in headline inflation to 20.12% could influence the committee’s decision.
At the parallel market, the naira traded at a wider spread of around ₦1,520 to the dollar, reflecting sustained demand for hard currency outside official windows. Market watchers noted that the exchange rate movements remain sensitive to crude oil prices, diaspora remittances, and foreign portfolio inflows.
Analysts at financial institutions said the MPC’s verdict will be crucial in shaping investor confidence, as businesses and households look to the CBN for clarity on interest rates, credit availability, and inflation management.
“The slight appreciation of the naira shows some resilience, but the bigger question is whether monetary policy will strike the right balance between stabilising prices and supporting growth,” one Lagos-based economist remarked.
The MPC meeting, which kicked off in Abuja on Monday, will conclude Tuesday, with CBN Governor Olayemi Cardoso expected to brief the media on the committee’s resolutions.
